Air India to cut 22% domestic flights amid soaring aviation fuel prices – Firstpost

India’s flagship carrier Air India will temporarily cut nearly a quarter of its domestic flight operations between June and August 2026 as soaring aviation turbine fuel (ATF) prices and mounting geopolitical disruptions squeeze airline margins, PTI reported on Wednesday, citing sources.

The Tata Group-owned airline is expected to reduce around 22 per cent of its domestic services during the three-month period, the report said. Air India currently operates around 4,400 weekly flights, including nearly 3,600 domestic services and about 800 international flights.

The airline said on Wednesday that it would temporarily reduce frequencies on select domestic routes, following an earlier decision to scale back some international services.

“In continuation of our previously announced adjustments to select international services between June and August 2026, we have temporarily reduced frequencies on certain domestic routes,” the airline said in a statement.

While the airline has not disclosed the exact sectors likely to be affected, the cuts are expected to hit frequencies on some metro and regional routes during the busy summer travel season.

Rising fuel costs and longer routes hit operations

The move comes as airlines globally grapple with elevated crude oil prices and operational disruptions linked to geopolitical tensions in West Asia.

Last week, Air India CEO Campbell Wilson said the airline was under mounting pressure from Pakistan’s airspace curbs, disruptions linked to the Iran conflict, and a strengthening US dollar.

Speaking at the Wings Club event in New York, Wilson said the closure of key air corridors had significantly increased flight durations and fuel consumption on several international routes.

“We now can’t fly over many parts of the Gulf, so we have to take an even longer routing. An eight-and-a-half-hour flight from Delhi to London now takes 12 hours,” he said.

Wilson added that fuel costs had doubled from around 34 per cent of the airline’s operating costs before the conflict escalated.

The Pakistan airspace ban and restrictions across parts of the Gulf region have disrupted several of Air India’s long-haul operations, particularly flights to North America. Some routes have reportedly been cancelled, rerouted or scaled back, leading to higher crew, fuel and operational expenses.

Leadership transition adds to uncertainty

The operational challenges come at a time when Air India is also preparing for a leadership transition.
Wilson said he would leave the airline in “a couple of months”, adding that his successor would inherit a difficult operating environment shaped by volatile fuel prices, airspace closures and rapid expansion plans.

“The next four years is going to be just as challenging as the past, albeit in a different way,” Wilson said.

Reuters has earlier reported that Vinod Kannan and Nipun Aggarwal are among the frontrunners to replace Wilson.

The airline has also faced increased scrutiny after a 2025 crash involving one of its Boeing 787 Dreamliner jets that killed hundreds of passengers.

Tata Group presses ahead with transformation plans

Despite the headwinds, Air India continues to pursue an aggressive transformation strategy under the Tata Group, including fleet modernisation, aircraft inductions, network expansion and the integration of Vistara.

The airline has placed record aircraft orders as it seeks to regain market share and establish itself as a major global carrier in one of the world’s fastest-growing aviation markets.

With inputs from agencies.